Question

Plunder Inc. accepted a six-month noninterest-bearing note for $2,800 on January 1, 2018. The note was accepted as payment of a delinquent receivable of $2,500.The cash collection on July 1, 2018, would be recorded as:_______.Discount on note receivable 300 Interest revenue 300Cash 2,800 Note receivable 2,800Cash 2,500 Note receivable 2,500Cash 2,800 Accounts receivable 2,500Interest revenue 300Cash 2,500 Discount on note receivable 300 Note receivable 2,800

Answer 1

Answer:

Cash 2,800 Accounts receivable 2,500 Interest revenue 300

Explanation:

If Plunder Inc. accepted a six-month non interest-bearing note for $2,800 on January 1, 2018, and the note was accepted as payment of a delinquent receivable of $2,500.

The cash collection on July 1, 2018, would be recorded as:

JOURNAL ENTRIES

Dr. Cash .............................2,800

Cr Accounts receivable............. 2,500

Cr. Interest revenue .......................300.